Review for test 3
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In a period of falling prices the LIFO method results in a lower cost of goods sold than the FIFO method
True
Which of the following would NOT be considered an operating expense
Cost of merchandise sold
The recording of a cash sale of merchandise requires a
Credit to a sales accounts and a debit to the cash account
The cost of goods available for sale consists of the beginning inventory plus the cost of goods purchased
True
Under the Lower of cost or market basis market is defined as current replacement cost
True
if a company determines cost of merchandise sold each time a sale occurs it
Uses perpetual inventory system
Which of the following is considered as an operating expense for a grocery store
Wage expense
